Press Office: International Islamic Trade Finance Corporation
The International Islamic Trade Finance Corporation (ITFC), member of the Islamic Development Bank (IsDB) Group, released its 2019 Annual Development Effectiveness Report (ADER). In 2019, ITFC approved $5.8 billion trade financing, a 12% increase from the previous year, to advance trade in member countries. Of this, $5 billion was disbursed towards improving the livelihoods of millions of people in line with the institution’s overarching goal to realise the targets set out in the UN Sustainable Development Goals (SDGs). Disbursement in Asian and CIS member countries of the Organization of Islamic Cooperation (OIC) stood at $2.6 billion, while in African OIC countries, total disbursements amounted to $2.4 billion.
To meet these SDGs, which include no poverty, decent work and economic growth, zero hunger and affordable and clean energy, in 2019 ITFC has financed $ 2.1 billion towards least developed member countries (LDMCs), representing 36% of the total trade finance portfolio. Additionally, more than $3.9 billion was extended to support intra-OIC trade.
Themed ‘Feeding the planet’, the report places emphasis on ITFC’s engagement in the global agri-food value chains and food security. Key highlights of ITFC’s impact across vital growth sectors in OIC member countries in 2019 include:
- Energy: $3.7 billion disbursed towards imports of fossil fuels, including 1.5 million metric tonnes of LNG, to support vital sectors including agriculture, construction, power, and transportation, while providing increased access to energy for 13 million people;
- Food and agriculture: $755 million disbursed towards food imports and agriculture initiatives including training on best farming techniques practices, thus boosting incomes for over 500,000 farmers;
- $290 million was extended to cotton and groundnuts producers in West Africa;
- Disbursement of $465 million to finance the import of over 1.3 million tonnes of wheat and 260 thousand tonnes of rice, among other basic food commodities, supporting food security in member countries.
- SMEs Development: $367.9 million channelled towards SMEs funding with disbursements benefitting an estimated 120 corporations and sustaining 45,000 jobs. ITFC has also been working towards creating an enabling environment through capacity building to enhance access to financing.
Summarising the institution’s achievements in 2019, Eng. Hani Salem Sonbol, CEO, ITFC said, “ADER demonstrates how important ITFC’s work is in supporting inclusive and sustainable socio-economic growth in the developing world. By aligning trade finance and development initiatives, we are providing integrated trade solutions designed for the needs of member countries targeting key economic sectors of agriculture, energy, and SMEs. Global value chains have an increasing importance in the development agenda because of the role that they play in reducing rural poverty and ensuring food security.”
In 2019, ITFC signed framework agreements worth $4.8 billion with nine countries namely Uzbekistan, Mali, Niger, Djibouti, Maldives, Tajikistan, Kyrgyz Republic, Suriname and Senegal; and mobilised $1.2 million through grants for trade development interventions in agriculture, financial institutions, capacity building and trade promotion.
The International Islamic Trade Finance Corporation (ITFC) is a member of the Islamic Development Bank (IsDB) Group. It was established with the purpose of advancing trade among OIC member countries, which would ultimately contribute to the overarching goal of improving socioeconomic conditions of the people across the world. Commenced operations in January 2008, ITFC has provided more than US$51 billion of trade financing to OIC Member Countries, making the Corporation the leading provider of trade solutions for OIC Member Countries’ needs. With a mission of being a catalyst for trade development among OIC Member Countries and beyond, the Corporation helps entities in Member Countries gain better access to trade finance and provides them with the necessary trade-related capacity building tools, which would enable them to successfully compete in the global market.For more information, please visit https://www.itfc-idb.org/ or email [email protected]